Although many people might want to compare a Chapter 13 repayment plan with the more popular Chapter 7 bankruptcy, other residents of Louisville, Kentucky might also wonder whether it is advantageous to file bankruptcy at all, especially if they are being forced to file a Chapter 13 because their income keeps them from filing Chapter 7.
One of the biggest advantages to filing a Chapter 13 is that, while a person is paying down his or her debts, he or she will generally be allowed to keep all of his or her property. This is an advantage over Chapter 7 bankruptcy, which may end with a person having to give up their property that is not exempt under state or federal law. Of course, Chapter 13 also beats having a creditor seize property or garnish one's wages.
There are also some advantages to using a payment plan in order to pay off one's debts. One the one hand, the process can take five years. However, the flip side is that a Kentucky family can in some cases use this time frame to stretch out their payments and get a lower, more manageable monthly payment that covers all debts.
While neither a Chapter 13 nor a Chapter 7 bankruptcy will discharge all the types of debt a person can incur, the end of a successful Chapter 13 can be a huge boon for a family in the form of thousands of dollars of debt relief. Moreover, with a Chapter 13, the blow to one's credit tends not to be quite so severe.
Not only does Chapter 13 offer certain advantages over not filing for bankruptcy, it also offers certain advantages over a Chapter 7 bankruptcy. An experienced bankruptcy attorney in Louisville can help a person better understand the advantages and disadvantages of a Chapter 13.